The tax year runs from 1 January to 31 December. Tax years not coinciding with the calendar year in relation to income from any source other than employment or services rendered are permitted, subject to approval from the Commissioner.
Income from employment
Tax on employment income is accounted for by the employer WHT at source under the pay-as-you-earn (PAYE) scheme.
Final withholding payments
Tax on final withholding payments is deducted by the payer at source.
Single instalment tax
Registration of title on the transfer of land and buildings situated in Tanzania, or of a transfer of shares in a locally incorporate company, or realisation of licence or concessional right on a reserved land requires a certificate from the Commissioner confirming that payment of tax (‘single instalment tax’) has been made.
There is also a reporting requirement to the Commissioner within 14 days from the date of realisation of the interest. The respective single instalment tax shall be paid within 30 days or such other period determined by the Commissioner from the date of realisation of an interest.
An individual is not required to file a tax return if the only taxable income is employment income derived from a resident employer, income by way of final withholding payments, or income subject to tax by way of single instalment tax. Where an individual has taxable income other than this, then there is a requirement to file an individual tax return, a statement of estimated tax, and a final tax return, and make instalment tax payments and a final tax payment as appropriate.
The statement of estimated tax payable contains an estimate of the chargeable income for the year of income and is due for filing within three months of the beginning of the year of income (calendar year or accounting period).
A final tax return contains a statement of chargeable income for the year of income and is due for filing within six months of the end of the year of income.
Payment of tax
Estimated tax is payable in four quarterly instalments (at the end of the third, sixth, ninth, and 12th months of the year of income). Any final tax payable is due by the deadline for filing the final tax return.
Interest on late payment is charged at the Bank of Tanzania discount rate.
Online remittance of withholding tax
Tax withheld monthly should be remitted online. The Revenue Gateway System generates a withholding certificate for taxpayers registered by the Tanzania Revenue Authority (TRA). The online certificate is used to claim credit against income tax. Non-resident taxpayers apply to the commissioner for a paper certificate as they are not registered with the TRA.